Fundamental analysis: Bausch Health Companies Inc. (BHC)

Awarener score: 5.2

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Superb) and growth (Very poor), and the company's inclination to return cash to the stockholders (Modest).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 6.0

Business has been shrinking at a fast pace. It's been substantially worse when measured against peer companies.
Bausch Health Companies Inc. business trend is extremely stable, which is best. It looks top-notch against rivals.

Margins score: 5.8

BHC profit margins -on goods and services sold- are usually excellent. They stand well ranked against rival companies.
Business profit on sales tends to be hardly sufficient. It's encouraging in relation to competitors.
Profits on sales made -available to repay debt and purchase properties- are usually very good. They remain excellent in relation to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat better than similar companies.
Profits -before income taxes- are usually meagre considering total sales, and remain encouraging in relation to rivals.
Total net profit tends to be meagre when confronted to sales. Company stands similar to comparable firms.

Growth score: 1.4

Bausch Health Companies Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.7

BHC had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
Research and development expenses consume a sparse portion of revenues. It's more than average in relation to competitors.
Business has been shrinking, despite research and development efforts. It stands in a very weak position compared to rival companies.

Profitability score: 5.5

Bausch Health Companies Inc. usually gets hardly sufficient returns on the resources it controls. It proves encouraging in relation to peer firms.
Due to insufficient track history, we were unable to estimate typical returns on invested capital (ROIC). They remain undisclosed in relation to similar companies.
Normal return on equity (ROE) is unavailable at this time, because of not enough yearly inputs to calculate. It ranks unknown against competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 3.8

BHC usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands encouraging in relation to rival firms.
The company is usually sparsely replacing property, plant, and equipment that gets old, instead using funds in something else. It can't keep forever, which is substantially worse when measured against industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains in good shape compared to peer enterprises.
We are not sure on the effectiveness of the company when repurchasing shares, as there were not enough numbers to crunch. It stands unidentified against rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 3.4

Bausch Health Companies Inc. has not disclosed intangibles assets, so we could not reach a meaningful conclusion on this metric. It happens to be a not known variable when measured with peer companies.
The company has somewhat more short-term resources than short-term obligations. Liquidity concerns might not be that important. It turns to be in a very weak position compared to similar firms.
Most resources controlled were provided for with financial debt. Creditors have more claims on the company than shareholders. Unless the company is a financial institution that takes deposits, the situation might be very risky. It remains bottom tier against rival firms.
Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks last-in-rank when measured against rivals.
For every dollar of short-term obligations, the company has less than a dollar of cash and short-term receivables. It's a disappointment compared to peer firms.
For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is bottom tier against similar enterprises.
Usually, sales are on somewhat less than three months credit. It still ranks almost average when measured against peers.
Normally has approximately six months of sales worth in inventory. It comes up as in a weak position compared to competitors.
On average, it takes a lot of months from the purchase to charging customers. It happens to be somewhat worse than peers.
On average pays suppliers approximately four months or higher after the purchase. It ranks similar to industry peers.
The company pays its suppliers six months or more before charging its customers, so there's abundant money invested in working capital. It's in a weak position compared to similar companies.
Usual business earnings barely cover net interest expenses. Creditors may be earning money by assuming risks, but hardly shareholders. Situation is risky, profitability must increase, or additional stockholders' funding will eventually be required. It stands mediocre against rival firms.
Business earnings have usually been very low when measured against loans taken. Even significantly cutting back reinvesting in the business, it could take more than ten years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks close to average when compared to similar firms.
Resource exploitation is slightly low when yearly sales are considered, business volume should be increased. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 3.5

Bausch Health Companies Inc. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands slightly better than similar companies.
The company usually generates somewhat more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, the current valuation might be reasonable. It's still encouraging in relation to industry firms.
In the past twelve months, the company has slightly enlarged the pool of investors by issuing new shares. The pie of earnings will now be split among a little more stockholders. It came up in good shape compared to peer ventures.
The company is drowned in loans. It almost belongs more to the creditors than the stockholders. The situation may be dire. It looks bottom tier against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks excellent in relation to rival firms.
There's no accounting equity, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains bottom tier against peer firms.
In the past twelve months, the operating business lost a little money. It happens to be encouraging in relation to industry peers.
In an alternate metric of bang for the buck, the company has usually shown a mediocre earnings power ability when measured against the current stock price and financial position. It's still a slight improvement compared to peer companies.

Total score: 4.1

Company at a glance: Bausch Health Companies Inc. (BHC)

Sector, industry: Healthcare, Drug Manufacturers—Specialty & Generic

Market Cap: 2.99 billions

Revenues TTM: 8.15 billions

Bausch Health Companies Inc., together with its subsidiaries, develops, manufactures, and markets a range of pharmaceutical, medical device, and over-the-counter (OTC) products primarily in the therapeutic areas of eye health, gastroenterology, and dermatology. The company operates through five segments: Bausch + Lomb, Salix, International Rx, Ortho Dermatologics, and Diversified Products. The Bausch + Lomb segment offers products with a focus on the vision care, surgical, and consumer, surgical, and ophthalmic pharmaceuticals products. The Salix segment provides gastroenterology products in the United States. The International Rx segment offers Solta products, branded and generic pharmaceutical products, OTC products, and medical device products, and Bausch + Lomb products in Canada, Europe, Asia, Australia, Latin America, Africa, and the Middle East. The Ortho Dermatologics segment provides dermatological products in the United States; and Solta medical aesthetic devices internationally. The Diversified Products segment offers pharmaceutical products in the areas of neurology and other therapeutic classes, as well as generic and dentistry products in the United States. The company was formerly known as Valeant Pharmaceuticals International, Inc. and changed its name to Bausch Health Companies Inc. in July 2018. Bausch Health Companies Inc. is headquartered in Laval, Canada.